Additional information:

Eng Hardware pays wages to its workers at the end of every month. However, some internal problems arise and it did not pay wages amounting to RM10,000 to its workers on time on the last day of December 2020.

It paid RM10,000 for insurance covered from period December 2020 until March 2021 on 3^rd December 2020.

It rents out part of its warehouse to another business for RM2,000 per month and receives the rent on the last day of each quarter on 31^st March, 30^th June, 30^th September, and 31^st However, the tenant has some financial difficulties and failed to pay the three-month rent from October 2020 to December 2020 on 31 December 2020.

On 1 December 2020, it received RM21,600 for a one year rental from a new tenant

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Required:-

Prepare the journal entry for the reversal of the balance on the last day of adjustment and post it to the general ledger accounts from the information I to iv provided above

Question 4

The following information is taken from the records of Wildlife Florist. The company uses the perpetual inventory system.

Date	Description	Units	Unit Cost (RM)

Dec1	Opening inventory	200	20

Dec 5	Sale	108

Dec 6	Purchase	200	18

Dec 12	Purchase	125	17

Dec 13	Sale	300

Dec 19	Purchase	350	21

Dec 29	Purchase	150	18

Dec 30	Sale	400

Required:-

a. Calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions:

(i).FIFO

(ii).Weighted Average

b. Assume each unit was sold for RM25. Complete the following partial income statements:

Question 5

The following balances were extracted from the books of Billion Precision for the year ended 31 December 2020.

	Dr (RM)	Cr (RM)
Land	500,000
Building	200,000
Motor vehicles	120,000
Plant and machinery	70,000
Profit b/f as at 01.01.2020		237,650
Capital		438,000
Acc depreciation as at 1.1.2020 :
-Building		60,000
-Motor Vehicles		69,250
-Plant & Machinery		40,000
Returns	3,600	4,100
Revenue		800,000
Purchases	400,000
Discounts	5,000

Carriage inwards	7,700
Opening inventory	52,000
Provision for bad debts		2,000
Trade receivables / Trade payable	66,000	43,200
Advertising	18,000
Staff training cost	4,000
Bad debts	12,500
Motor expenses	27,000
Rental	90,000
Bank		7,600
Wages and salaries	126,000
	1,701,800		1,701,800

Additional information:

(i) The provision for bad debts should be 4% of trade receivables.

(ii). Depreciation is to be charged as follows:

Buildings 2% on cost.

Plant and machinery 20% on cost. -Vehicles 25% on cost.

(iii)The closing inventories is valued at RM57,000.

Required:

a. Prepare the Statement of Comprehensive Income for the year ended 3 December

b. Prepare the Statement of Financial Position for the year ended 31 December

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University	Wawasan Open University(WOU)
Subject	BBM 205/03: Basic Accounting

BBM205/03: Eng Hardware Pays Wages to its Workers at the End of Every Month. However, Some Internal Problems Arise: Basic Accounting Assignment, WOU, Singapore

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